It's unlikely to have 50% discount for the second hour and on. But I always consider it as a great sign when I see the price dropping a bit for 90 mins and then a bit more for 2 hours and so on.
For my perspective as client, the best sign is $300/hr and $400/90mins rather than $450/90 mins; $350/hr then $450/90mins; $400/hr then $500~$550/90mins etc.
The 'discount' has to be big enough to be a really attractive deal, but small enough that providers are willing to give up. $50 discount at $300 level seems a lot, but the amount of work you can save should be worth it and I will be happy to pay a bit more and feel more relaxed and not worry about the one-hour clock that much.
Posted By: nipring12
This topic surfaces pretty regularly and I never commented before because it always seems to go south and end in flame wars when it should be a logical discussion based on a personal business model. I absolutely agree that providers should never be doing extra hours for free. Time is always money. However I don't understand why more providers don't use a sliding scale that would maximize their hourly rate profitability.
Depending on how you operate, you have a number of fixed costs that you have to cover. If you operate out of your home and put minimal effort into getting ready and service primarily regulars then you should stick with a flat rate. But if you book a hotel room or do outcalls that require transportation expenses or put time into preparation for each date (e.g. doing hair and makeup, verifying new clients, etc) then a sliding rate might make more sense.
A typical day for ladies I have seen is to rent a room, travel there, do their prep and see 3 clients (on a good day).
A decent room downtown averages about $125 with taxes, Uber or parking garage and vehicle expense is $50 round trip, and another $25 for miscellaneous (makeup, condoms, lube, wipes,whipped cream, vibrator batteries, naughty nurse’s outfit, nipple clamps - sorry, got off track there). So average of $200 in fixed expenses.
Imagining you are a well reviewed provider who can ask a higher level rate, consider this:
Scenario 1- you see 3 clients for one hour each at $400. 1 is a repeat, the other 2 are new.
2 hours getting to hotel, checked in, prepping room and doing hair and makeup.
1 hour verifying the new clients.
3 hours of actual client time
3 hours in between to prep and accommodate scheduling.
1 hour for room clean up, check out, and drive home.
Total = 10 hours (assuming all goes as planned)
You made $1,200 - $200 in expenses = $1,000 / 10 hours = $100 per hour. Not a bad day’s work, but pretty busy and stressful.
Scenario 2 - You see 2 clients for 2 hours each with sliding scale of $400 for first hour and $200 each additional hour. 1 is repeat, 1 is new.
2 hours getting to hotel, checked in, prepping room and doing hair and makeup.
0.5 hour verifying the new client
4 hours of actual client time
1.5 hours in between to prep and accommodating scheduling.
1 hour for room clean up, check out, and drive home.
Total = 9 hours (assuming all goes as planned)
You made $1,200 - $200 in expenses = $1,000 / 9 hours = $111 per hour.
You increased your hourly wage, took home same amount but worked an hour less
Had half the stress only wondering if one new client was LE or an ax murderer
Even though contact time was 4 hours you probably had less physical wear and tear with 2 guys over 4 hours than with 3 guys over 3 hours.
The guys were thrilled you gave them a great rate and rate you higher because they didn’t feel rushed and made a better connection.
With only 2 clients you had less chance for cancellation (though one client cancelling does have greater impact).l You also might be able to cut back on advertising expenses as you need fewer clients overall and (IMHO) have more repeat clients.
Each provider has a unique set of variables, but I think it’s worth considering. Personally I would be unlikely to book 2 hours at $400, but offer me 50% off additional hours and I’d be pretty tempted.